Correlation Between HUMANA and SEI Exchange
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By analyzing existing cross correlation between HUMANA INC and SEI Exchange Traded, you can compare the effects of market volatilities on HUMANA and SEI Exchange and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in HUMANA with a short position of SEI Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and SEI Exchange.
Diversification Opportunities for HUMANA and SEI Exchange
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUMANA and SEI is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and SEI Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEI Exchange Traded and HUMANA is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on HUMANA INC are associated (or correlated) with SEI Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEI Exchange Traded has no effect on the direction of HUMANA i.e., HUMANA and SEI Exchange go up and down completely randomly.
Pair Corralation between HUMANA and SEI Exchange
Assuming the 90 days trading horizon HUMANA INC is expected to generate 172.04 times more return on investment than SEI Exchange. However, HUMANA is 172.04 times more volatile than SEI Exchange Traded. It trades about 0.08 of its potential returns per unit of risk. SEI Exchange Traded is currently generating about 0.1 per unit of risk. If you would invest 7,917 in HUMANA INC on September 12, 2024 and sell it today you would lose (222.00) from holding HUMANA INC or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.86% |
| Values | Daily Returns |
HUMANA INC vs. SEI Exchange Traded
Performance |
| Timeline |
| HUMANA INC |
| SEI Exchange Traded |
HUMANA and SEI Exchange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUMANA and SEI Exchange
The main advantage of trading using opposite HUMANA and SEI Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, SEI Exchange can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SEI Exchange will offset losses from the drop in SEI Exchange's long position.The idea behind HUMANA INC and SEI Exchange Traded pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| SEI Exchange vs. SEI Exchange Traded | SEI Exchange vs. SEI Exchange Traded | SEI Exchange vs. SEI Exchange Traded | SEI Exchange vs. Listed Funds Trust |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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